Originally Posted by
Danger Man
The answer to your question:
The Merchant that you make a purchase from on the credit card. Credit card discount rates are less than 2% for a merchant until you present the merchant with a rewards card then the rate goes way over 3%.
Although it is true the funds start at the merchant (from the customer, actually), discount rates and fees are a function of the card brand (visa, mc, amex, disc, etc) not of the terms associated with the card (points, miles, interest rates, etc.) In general, the merchant has no idea of whether a card is a "rewards" card or otherwise.